Everything We Know About Tesla's Next-Gen Car: The More Affordable Model

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During the Q4 2024 Earnings Call, Elon Musk confirmed that Tesla’s next-generation affordable vehicle is set to launch in the first half of 2025. Now, more than three months into 2025, Tesla may be just a few months away from unveiling their next-gen model.

Surprisingly, details remain scarce—no major leaks, early sightings, or concrete reveals. That hasn’t stopped speculation, though.

Project Redwood

Internally, Tesla refers to the project as Project Redwood, while externally, fans and skeptics alike have dubbed it the Model Q or Model 2. A Chinese tech outlet leaked some details back in December, suggesting a vehicle sized somewhere between a MINI and a Model 3.

That estimate aligns with expectations for Tesla’s compact, mass-market EV, but many questions remain. Where will Tesla build it? Will it share parts with other models? And when will customers finally get their hands on it?

We have some ideas on how to answer these questions—and more. Some of this information comes from past Tesla events, such as the “We, Robot” autonomy event and previous earnings calls.

As always, we’ll cite sources where possible and point out where we’re making informed guesses or speculating.

Based on the Cybercab

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Tesla plans to build the Cybercab and the next-generation vehicle at Giga Texas. Initially, both were slated for production at Giga Mexico, but with increased tariffs under the new administration, those plans fell through. As a result, the two vehicles will likely be built side by side, making it essential for Tesla to share as many components as possible.

Just as the Model 3 and Model Y, as well as the Model S and Model X, share numerous parts, the next-gen vehicle is expected to have a significant overlap with the Cybercab. Both are designed for inner-city travel and built with affordability in mind.

However, this doesn’t necessarily mean the next-gen vehicle will resemble the Cybercab. Instead, it will likely use similar components, such as a single lower-horsepower rear motor, a smaller battery pack, and a more compact frame. By streamlining parts production, Tesla can drive down costs to make both the Cybercab and the next-gen vehicle financially viable.

Premium Feel

Lars Moravy, Tesla’s VP of Engineering, recently appeared on the Ride the Lightning podcast, where he discussed the upcoming next-generation affordable model and Tesla’s broader goals.

One key objective is ensuring that every Tesla product feels like a premium purchase—delivering more value than its price suggests. To achieve this, Tesla has been exploring new materials and innovative combinations to improve durability, design, and overall build quality, with the next-gen affordable vehicle being no exception.

Paint-Impregnated Panels

The Cybercab is using unique paint-impregnated plastic panels for its body shell—designed to be easy to produce, customize, and replace. The best part is that nicks and scratches are far less noticeable since the paint runs through the material. This makes repairs and replacements quick and hassle-free in case of accidental damage.

While the Cybercab will only come in the gold color we’ve seen, Tesla is expected to offer multiple variants and color options for the next-gen model. Given how striking the Cybercab’s base color already looks, there’s a strong potential for new finishes and textures unlike anything seen before.

City-Range

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At the We, Robot event, Tesla shared additional details about the Cybercab, and we used that information to estimate its battery size. Based on our findings, we estimate the battery pack to be between 51.6vkWh and 74.6vkWh, which would give the Cybercab an estimated range of 220 to 270 miles, assuming it achieves the 5.5 miles per kWh Tesla mentioned.

Tesla also confirmed during the Q3 2024 Earnings Call that the Cybercab will feature a more power-efficient powertrain, improving its efficiency over current models. This powertrain is likely to be shared with the next-gen model, meaning it will also see a lower miles per kW metric.

Wireless Charging

We don’t believe that Tesla will produce the next-gen model with wireless charging, like the Cybercab. Implementing wireless charging is expensive, and currently, the Cybercab is the only known vehicle capable of using it. The Cybertruck has the necessary receivers, but the feature hasn’t been implemented yet, but may be available as a retrofit.

Tesla has already said they plan to roll out wireless charging at select V4 Superchargers in the future, but these will likely be aimed at the Cybercab and Tesla’s other flagship models. This means that the upcoming Model S and Model X refresh could include wireless charging, but it may remain exclusive to higher-end models before trickling down to the rest of the lineup, due to cost.

Price

Tesla’s next-gen model has often been referred to as the “$25,000” model, however, we need to understand that was more than four years ago. Tesla has been mum on the price point of the vehicle, except for the $25k price tag that was shared back in 2021.

Tesla’s offers a cheaper RWD Model 3 in Mexico for about $37,500 USD that removes certain features such as heated and cooled seats and leather, and Tesla is expected to manufacture a new Model Y that costs 20% less to produce in the future.

We believe Tesla will launch its next-gen vehicle for about $30k before any incentives. Once you account for gas savings and potential incentives, this car could sway a lot of customers due to price alone.

Release Date

Tesla previously hinted at a special event tied to its latest referral rewards system, which we believe may coincide with the unveiling of the next-gen affordable model.

With just a couple months left until until the midway point of 2025, it may not be long before we find out more details about this lower-cost vehicle.

We’re excited to cover the event in person, so if you’re considering buying a Tesla, don’t forget to check out our referral codes.

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Tesla Expected to Offer FSD Transfers in Europe

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It has been a long wait for FSD for European customers, many of whom paid for the feature years ago on now legacy hardware. While the FSD transfer program has come and gone multiple times, there’s something to be said about having it available in North America, where it can be used, and in Europe or other countries, where it still just remains the same as Enhanced Autopilot (differences between Autopilot, EAP, and FSD).

FSD Transfer is a nice goodwill gesture from Tesla that in theory doesn’t cost them anything. Instead, it keeps customers, especially those who have been waiting for years, loyal and happy. It also incentivizes them to upgrade to a newer Tesla with HW4, where FSD will hopefully be achieved.

In a reply to a post on X, Elon agreed with the suggestion that offering FSD transfers in Europe would be a fair solution for those who have already purchased FSD but can’t use its capabilities.

Sounds fair

— Elon Musk (@elonmusk) July 13, 2025

A Fair Solution

FSD Transfer directly addresses a growing concern for many long-term European Tesla owners. Thousands of customers purchased the full package, often many years ago, with the expectation that FSD would eventually be capable and approved for use. However, the reality is that FSD, even as an advanced driver assistance system (ADAS), continues to be pushed back in Europe.

As the regulatory process continues at a snail's pace, many of these early supporters are now reaching or have already passed the point where they’re ready to upgrade to a new Tesla.

Without the transfer program, it's a difficult choice: either throw away your original investment in FSD and pay for the package a second time (FSD price history), or subscribe to it in the future.

Offering FSD transfers is a good way for Tesla to meet them halfway. It's a difficult situation, and one that’s being hindered by processes beyond the control of both the customer and Tesla. However, a transfer helps both parties. Tesla sells another vehicle, and the customer gets to keep FSD.

When Will it Be Available?

Based on how FSD transfers have worked in the past following Elon’s announcements, this feature is likely to become available for a limited time period in the coming days or weeks. If it happens, we should expect an announcement from Tesla Europe on X and emails being sent out to Tesla customers.

Once the program is in place, all you need to do is complete your vehicle purchase and then inform your Tesla sales advisor that you’d like to transfer FSD. You don’t even have to sell or trade in your old Tesla; FSD will simply be removed from it as a feature.

Hopefully, Tesla enables FSD Transfers for everyone, regardless of region. It should be an ongoing offer until at least FSD is approved in the given country or region.

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Tesla Increases Robotaxi Fare Fee, Up from $4.20

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The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.

This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.

But the price is now a princely $6.90, as foretold in the prophecy 😂

— Elon Musk (@elonmusk) July 14, 2025

Context Matters

Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.

So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.

That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).

Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.

A “Maturing” Service

The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.

While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.

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